By Chris Wack
The Container Store Group shares were down in Tuesday morning trading after the company said it has adopted a poison pill.
Shares dropped 8% to $9.31 in recent trading. The stock is down almost 70% this year.
The retail company's board of directors adopted the limited duration stockholder rights plan in response to the rapid and significant accumulation of its common stock by a single stockholder.
The rights plan is effective immediately and is scheduled to expire Oct. 7, 2025.
The company said the plan is designed to promote the fair and equal treatment of all stockholders and guard against any stockholder obtaining undue influence over the company through open market accumulations.
Under the rights plan, one preferred stock purchase right will be distributed for each share of stock held by shareholders of record on Oct. 23. The rights will become exercisable if a person or group acquires 20% or more of the company's stock.
In addition, any person who currently owns more than the triggering percentage may continue to own its shares of stock but may not buy any additional shares without triggering the rights plan.
In May, the company said it was evaluating potential strategic options.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
October 08, 2024 09:49 ET (13:49 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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